Stock Market Sways Amid Economic Uncertainties
U.S. stocks dropped as investors secured profits amidst record-high indexes and ahead of inflation data. Concerns about stretched valuation and future rate cuts were sparked by Fed Chair Powell's comments. The Dow, S&P 500, and Nasdaq saw declines while concerns over asset valuation and future central bank decision loomed.
U.S. stocks ended lower on Wednesday, marking the second consecutive session of declines. Investors seized profits amidst near-record index levels following remarks from Federal Reserve Chair Jerome Powell about potentially high stock valuations. These remarks come as anticipation builds around upcoming inflation data.
The stock market has been experiencing simultaneous record highs from major indexes, including the small-cap Russell 2000. However, Powell's comments have drawn comparisons to former Fed Chair Alan Greenspan's 'irrational exuberance' speech in 1996, suggesting caution over asset pricing.
Among key indexes, the Dow Jones Industrial Average dropped 171.50 points, while the S&P 500 and Nasdaq Composite also saw declines. Investors are now tuning in to personal consumption expenditures data, seen as a key inflation indicator, expected later in the week. The stock volumes on U.S. exchanges were higher than average.
(With inputs from agencies.)
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